Seven months ago, current Twitter owner Elon Musk said he would integrate cryptocurrency payments before buying the social media giant. Sources say the team is working on the infrastructure for the payment platform, and Twitter is moving forward with regulatory approvals and registration.
Elon Musk’s Twitter Payment System Plan Advances, Adding Cryptocurrency Later
Elon Musk appears to be moving forward with plans to integrate a payment system into Twitter. According tosourcescited by the Financial Times (FT), Eron’s second-in-commandEsther Crawford,is working on logistics and has formed a small team. Musk has long indicated his intention to create a payment system, and in mid-June 2022, the current Twitter owner mentioned integrating cryptocurrencies.
“I think it makes sense to integrate payments into Twitter so that it is easier to send money back and forth, fiat as well as crypto – basically, whatever someone finds useful,” Musk first all-hands meeting with Twitter staff detailed in.
sources cited by the FT on January 30, 2023, say Twitter is also seeking regulatory registration and state licensing. Sources familiar with the matter say that Twitter has begun applying for financial licenses in several states.The FT also reports that Musk has appointed Crawford as CEO of Twitter Payments.FT sources say that the payment system initially will be a fiat currency and plans to add cryptocurrencies later.
Before Musk took over Twitter, former CEO Jack Dorsey introduced a beta crypto chip service and NFT capabilities in 2021; in April 2022, Twitter worked with payments giant Stripe to pilot crypto payments. In November 2022, Bitcoin.com News reported that Twitter had registered with the U.S. Financial Crimes Enforcement Network (FinCEN) to legally process funds.In an audio podcast on Twitter Spaces, Musk said Twitter will be offering money Market account and debit card offerings, he said.
However, senior equity analyst and payments expert
Lisa Ellis, 31, of Moffettnathanson LLC, told FT that companies face many regulatory hurdles in becoming payments companies, causing many to quit after their first attempt She said that this has been the case. Ellis said, “Many (technology) companies experiment and then give up.” They are burdened with long-term investments and risks, including potential fines for problems and the need for constant licensed compliance infrastructure.”
What do you think of Elon Musk’s vision of integrating payments into Twitter? Do you think it will succeed or do you think it will face challenges like other tech companies? Share your thoughts on this topic in the comments section below.
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